Stockbrokers said local participation was low as some
investors were on holiday in the short trading week. Markets
were closed on Thursday for independence day.

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"Interest rates are slowly picking up and the market is
concerned over that," a stockbroker said on condition of
anonymity.

Turnover was 307.9 million rupees ($2.14 million), less than
half of this year's daily average of 828.5 million rupees.

The index had fallen 7.1 percent this year through Friday as
foreign investors, unnerved by global concerns over China's
economy, cut their exposure.

Foreign investors sold a net 60.6 million rupees worth of
shares on Friday, extending the year-to-date net foreign outflow
to 259.3 million rupees.

Analysts said a rising trend in local interest rates has
been a concern and local stocks could come under further
pressure.

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Yields on treasury bills rose between 7 and 23 basis points
at a weekly auction on Tuesday with yields on 182-day and
364-day T-bills rising to more-than-two-year highs, signalling a
further rise in market interest rates, which move in tandem with
the yields.